Small Cap Equities Poised for Blow-Off Rally

The Russell 2000 (IWM) is up nearly 400% from the 2009 market bottom, however, judging by the following chart pattern breakout the final blow-off rally may have just begun:


IWM has been in a messy consolidation since the end of October and this morning’s breakout from the diamond pattern, if it holds, will target a move to 125+ (5%+ higher).

Pulling it out to a weekly time frame it is easy to see that the Russell has really been in a consolidation since the beginning of 2014:


In addition, judging by the CNN Money Fear & Greed index sentiment is fairly neutral currently which only serves to add fuel to any upside breakout in equities: